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BUSI 4707 A

Regionalism and Globalization

Winter 2016

INSTRUCTOR: Alex Beliaev, P.Eng, MBA

OFFICE: TBD

CLASS HOURS: Thursdays 17:35-20:25

CLASSROOM: Southam Hall 417

OFFICE HOURS: by appointment only

EMAIL: alexbelv@yahoo.ca

Teaching Assistant: TBD

1.0 Text Books and Required Readings: The following textbook is required for this course:

Wild, Wild and Han (2014) International Business; The Challenges of Globalization, 8th edition,

Pearson/Prentice Hall (hereafter WWH); ISBN-10: 0133063003 • ISBN-13: 9780133063004

(available on reserve at the library)

In addition to the textbook, key/required readings are assigned from other sources (e.g., periodicals,

case studies) for each week as indicated in the outline. Supplementary readings are assigned where

deemed appropriate.

Supplementary Readings:

1. Bernard M. Hoekman & Michel M. Kostecki. (2009). The Political Economy of the World Trading

Systems: The WTO and Beyond. Oxford University Press, THIRD EDITION ONLY (on Reserve in

the University Library).

2. Sangeeta Khorana, et al. (2010). Bilateral Trade Agreements in the Era of Globalization. (on

reserve in University Library).

2.0 Prerequisites: This course covers trends in globalization versus supra- and sub-national regionalism. Role of

international institutions (e.g. OECD, WTO). Strategy adaptation and integration within and across trade

blocs (e.g. NAFTA, EU, Mercosur, ASEAN). Strategies for sub-national markets with similarities across

different countries. Prerequisite(s): third-year standing in B.Com., B.I.B., Minor in Business or Business

Minor for the Bachelor of Engineering, and BUSI 2701 or BUSI 2702.

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3.0 General Course Introduction and Information Success in the 21st century demands visionary and dedicated leadership at management corporate,

sectorial, sub-national and national levels. As we will discuss in this course how globalization and

regionalism have intensified competition creating opportunities and risks along the way. Indeed,

business managers currently face a landscape characterized by increasing integration (i.e., high levels of

globalization and regionalization) that has in turn been dominated by three powerful forces, namely:

change, complexity and uncertainty. It is in such an environment that business managers must

strategically respond to and also influence their environment by building dynamic and sustainable

capabilities to confront competitive dynamics domestically and abroad.

Taking a broader perspective this course examines the conceptual, theoretical and practical meanings of

regionalism and globalization with a particular focus on the managerial implications of these processes

within the context of the dynamics of the global economy and the associated responses by businesses,

governments and civil society actors in industrialized, emerging, transition and developing countries.

Thus, this course specifically seeks to:

(1) Provide students with a clear understanding of the meanings of regionalism and globalization and how these processes are implicated in the broad dynamics of the international environment facing business corporations and state authorities at various (i.e., local, sub-national, national regional and global) levels.

(2) Explore how various actors including corporate organizations, public institutions have responded to and/or facilitated/propelled global/regional dynamics

(3) Enable the student to apply theory to the phenomena we observe in the “real” world; (4) Further enhance the students’ individual and group oriented learning tools and skills, including

research, analytical, presentation and teamwork skills; and, (5) Prepare students for more advanced studies in regionalism/globalization and international

business.

Various methods will be used during the semester: lectures, case analysis and discussions, critical

discussions of assigned readings, student case presentations, stories, current events relevant to the

course, videos, and guests. Students must read all assigned readings and come to class prepared to

engage in informed discussions. Students are also encouraged to bring in their own national, regional

and international experiences as may be relevant for class discussions.

Class attendance is mandatory for this course.

4.0 Grading Scheme: Class Participation 10%

Mid-term Exam (In-class) 15%

Final Exam 30%

Term Project (Group):

o Phase 1: Research Memo and Preliminary Presentations 10%

o Phase 2: Project Presentation 15%

o Phase 3: Final Report 20%

Total 100%

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NOTE: The student MUST participate in ALL items of the Grading Scheme in order to get a passing grade.

Failure to do so will result in failing the Course.

Individual Participation

Attendance in this class is mandatory. Students are required to come to class on time. The Professor

reserves the right to take attendance records at randomly selected times. Any student who is unable to

come to class must inform the Professor before class or as soon after as possible. In addition to physical

presence, the course requires each student to come to class prepared to actively engage in the

discussions of the day. Students are required to have read all assigned readings before coming to class

and must come prepared to make contributions especially in areas where they feel particularly

knowledgeable or feel strongly about. Assessment of participation is based on demonstrated knowledge

of class materials as discussed in class and group presentations. Students with special needs should see

the Professor during office hours.

To make it easier for the Professor to recognize your in-class contributions, Please place a name tag as

you’re known in the official class list on the desk or use a nametag.

IMPORTANT NOTES ON EVALUATION:

1. If you’re not sure how your work will be evaluated on any aspect of the Grading Scheme, please

consult the Professor for clarification.

2. All students are expected to be personally present for all grading assignments (tests,

examinations, meetings, etc). Failure to attend will result in a grade of zero. Students with

legitimate reasons must report immediately their absence to the appropriate authorities

(Registrar’s Office in case of University Exams).

3. English is the medium of instruction: Both spoken and written work will be judged on content as

well as grammar, style, organization, formatting and presentation. For further details, consult

“Paper Formatting & Documentation Guidelines”:

http://sprott.carleton.ca/academic_programs/index.htm. Click on “Useful Links” then “Paper

Writing Guidelines”

4. Supplemental and grade raising exams are not available for this course.

5. Students must record, double check and observe all due dates.

6. If Group Assignments include peer evaluations, details will be given in class.

7. If circumstances change some aspects of the Course and Grading Scheme may be changed and

students will be notified as soon as possible.

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5.0 Term Project

General Canada exports approximately 80% of everything it produces. In this context, students are asked to

select and research a specific country within a regional trade bloc which represents an export

opportunity for a Canadian sector. Students are asked to conduct research into the macro-economic,

political, and business environment attributes of the selected country as well as research a key Canadian

industrial sector in terms of its capabilities. The goal of the project is to qualify and quantify the

strengths, weaknesses, threats and opportunities of a Canadian sector in the context of regionalism and

globalization of the selected country. This project will be organized as follows:

1. Students, under the guidance of the Professor, will form groups of at least four to five.

2. Each group will select a research project by selecting:

a. A regional trade bloc, followed by a country within the trade bloc, among those posted

by the Professor at the beginning of the term

b. A Canadian industry sector among those posted by the Professor at the beginning of the

term which represents an export opportunity into the country selected in item a.

There are three phases to the term project:

Phase 1: Interim Report Each student group is required to select a trading bloc of its choice and prepare a brief background of the chosen bloc. Each group will prepare a 10 min presentation and submit a research memo based on instructions published in cuLearn.

Phase 2: Final Presentations Each team/group will be required to do a 25 minute presentation based on their respective term projects. Presentations will be assessed for both content and presentation skills. The instructor will facilitate the discussion and provide guidance on the subject matter as deemed appropriate. Each team will also assign roles to other teams and the instructor for question period.

Phase 3: Final Report Each group is required to prepare a final report of their respective project based on the

data/information and feedback received in the preceding phases. A suggested outline of the final report

will be posted on the cuLearn.

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The following are recommended regional trading blocs and Canadian industrial sectors for the term

projects:

Recommended Regional Trade Blocs: Recommended Industrial sectors:

European Union (EU)

Central American Free Trade Agreement

Southern Common Market (MERCOSUR)

Caribbean Community and Common Market (CARICOM)

Association of Southeast Asian Nations (ASEAN)

GCC (Gulf Cooperation Council)

Economic Community of West African States (ECOWAS)

South Asian Association for Regional cooperation (SAARC)

Southern African Development Community (SADC)

Arab Maghreb Union (UMA)

Commonwealth of Independent States (CIS)

Latin American Integration Association (ALADI; excluding MERCOSUR Member States)

Economic Cooperation Organization (ECO, Central Asia)

Information and communications technology

Cleantech

Agriculture

Extractive/Mining

Transportation

Oil and Gas

Retail

Heathcare

Education

Media & Entertainment

Select Assessment Tools and Databases

1. Trade and Investment:

World Trade Organization (WTO), and the International Trade Centre (ITC), Trade

Performance Index

The World Bank Group (www.worldbank.org)

The United Nations Conference on Trade and Development (UNCTAD)

Export Development Canada (www.edc.ca)

The World Investment Directory

The United Nations Industrial Development Organization (UNIDO)

The Fraser Institute (Economic Freedom of the world)

2. Migration and Remittances:

The World Bank: Migration and Remittances Factbook 2011

The International Organization for Migration (www.iom.int)

3. Trading Blocs and Country Websites:

Some regional blocs such as the EU and the ASEAN and international regional organizations

such as the OECD and G20 may have data on their respective websites

Some countries such as Canada (e.g. www.international.gc.ca) and their respective statistics

bureaus (e.g. www.statcan.gc.ca) have data and information on their own websites.

4. Other Relevant Databases:

TRAC: Transparency International

Global Talent Index (GTI): Heidrick & Struggles

The Future of Migration: Building Capacities for Change International Organization for

Migration

HDI (UNDP): The Number of Refugees who have migrated or fled their country

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6.0 BUSI 4707A Course Schedule

Week 1 (Jan 7th): Intro and Course Overview; Globalization: What is it?

In this first session of the course, the class will discuss the structure and objectives of the course as well as elicit the participants’ expectations. The session will also review administrative arrangements (re: assignments, test, group term project, class presentation, etc.) and then initiate a general discussion and preliminary articulation of the issues at the center of this course. The first topic to be discussed is the definition of globalization. This session will explore the meaning of globalization focusing on its manifestations, dynamics and impacts.

Questions to Ponder: (a) What is global? (b) Why have world markets become more integrated today? Why is this significant? (c) How has this integration taken place? (d) Who are the key actors in the integration process?

Key Readings: Wild, Wild and Han (2007):

(a) “Globalization” (Chapter 1) (b) “Cross-Cultural Business” (Chapter 2) (c) “Economics and Emerging Markets” (Chapter 4) (d) Nayyar, D. (2006) “Globalisation, History and Development: A Tale of Two Centuries”,

Cambridge Journal of Economics 30:137-159.

Week 2 (Jan 14th): What is Regionalism?

The 1980s and 1990s saw a sharp increase in regional trade agreements. What accounts for such a resurgence and how different are the recent arrangements from those of the earlier periods? What are the benefits and costs of such arrangements? This session will be devoted to addressing these questions by exploring the broader meaning of regionalism and its relationship with globalization. Specifically, the class will examine the differences between the “old” and “new” regionalism, as well as between regionalism and regionalization.

Questions to Ponder: (a) What is a region? (b) What are the differences between the “old” and the “new” regionalism? (c) What factors account for the resurgence of regionalism? (d) Is there a single pattern of regional integration, or do different regions have different goals,

institutional designs, and methods of cooperation? How do we account for the differences? (e) Is regionalism a “stumbling block” or “building block” to global free trade? In other words,

does regionalism help build momentum for multilateral liberalization or undermine more general liberalization?

Key Readings: (a) Wild, Wild and Han (2007) “Regional Economic Integration” (Chapter 8) (b) Vayrynen, R. (2003) “Regionalism: Old and New”, International Studies Review 5(1): 25-51 (c) Case: Chiquita Brands International, Harvard Business School, Case 797015, 1996

Due: Term Project Topic submit for approval

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Week 3 (Jan 21nd): The Impacts of Globalization and Regionalism

For the proponents, globalization is the harbinger of everything good, but for the critics/skeptics globalization (and regionalism) are nothing but sources of intense worry. This session will thus examine the different ways globalization/regionalism can be both of benefit as well as risky to society.

Questions to Ponder: (a) In what ways does globalization affect you as a consumer? (b) Is fair globalization feasible? (c) Do regionalism and/or globalization foster increased well-being, or increase poverty and inequality? (d) Should we be concerned about increasing financial fragility? (e) Does regionalism offer benefits to developing countries that they cannot secure at the global level?

Key Readings: Wild, Wild, and Han (2007)

(a) “Politics, Law and Business Ethics (Chapter 3) (b) “International Trade” (Chapter 5) (c) Glyn, A. (2004) “The Assessment: How Far Has Globalization Gone?” Oxford Review of

Economic Policy 20(1):1-14. (d) Case: Nanosolar, Harvard Business Review

Week 4 (Jan 28): Integrative Trade; Measuring Globalization & Regionalism

Numerous efforts are being expended (with varying degrees of success) on measuring globalization and regionalism. This session will critically explore some of these projects with the particular aim of familiarizing students with the various techniques/approaches used as well as with the purposes, contexts and ethics of such endeavours.

Questions to Ponder: (a) What is Integrative Trade? (b) What are the purposes of measuring regionalism/globalization? (c) How can globalization and regionalism/regionalization be best measured? In other words,

what techniques and approaches are best suited to measuring globalization/regionalism?

Key Readings: (a) Kaufmann, D., A. Kraay and M. Mastruzz Governance Matters VII. (b) Kearney, A. T. & Foreign Policy (various years) “Measuring Globalization” in Foreign Policy

Magazine, Available in the Library, online.

Due: Interim Report and Group Preliminary Presentations

Week 5 (Feb 4th): Global/Regional Governance and International Business

A variety of institutions and a complex web of principles and practices govern international economic relations. In fact, contemporary globalization has been accompanied by the emergence (at multiple levels) of a number of new governance regimes as well as through the breathing of new life into old mechanisms. This session will explore and critically assess global level institutions and organizations and how they affect international business, and vice versa.

Questions to Ponder: (a) What roles do the WTO, the World Bank, and the IMF play in the world economy? (b) Are they clubs of the rich nations?

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(c) If not, why did thousands of people in Seattle protest against the WTO meeting in 1999?

Key Readings: (a) Wild, Wild and Han (2007) “Business-Government Trade Relations” (Chapter 6) (b) Teegen, H., J.P. Doh, and S. Vachani (2004) “The Importance of Nongovernmental

Organizations (NGOs) in Global Governance and Value Creation: An International Business Research Agenda”, Journal of International Business Studies 35:463-483.

(c) Case: Can Florida Orange Growers Survive Globalization?, Harvard Business School

WEEK 6 (Feb 11th): Midterm Exam

WEEK 7 (Feb 18 th): Winter Break

WEEK 8 (Feb 25th): International Competitiveness

The need for countries to be more competitive has almost become an article of faith in this era of globalization and regionalism. However, while statements about competitiveness abound, a precise definition has remained elusive. This session will thus engage students in the ongoing debate about competitiveness and introduce them to the World Economic Forum’s “Global Competitiveness Index”.

Questions to Ponder: (a) What are competitiveness/competitive advantage? (b) Can we all be more competitive? (c) What are your views/opinions on global competitiveness ranking? (d) What are industrial clusters? Why do they arise? What are their main benefits?

Key Readings: (a) The Global Competitiveness Report 2014–2015, World Economic Forum; (b) Snowden, B. and G. Stonehouse (2006) “Competitiveness in a Globalised World: Michael

Porter on the Microeconomic Foundations of the Competitiveness of Nations, Regions, and Firms”, Journal of International Business Studies 37:163-175.

(c) Case: Ready to Take Off: The Global Large Civil Aircraft Industry, Harvard Business Review

Week 9 (Mar 3): Foreign Direct Investments

Foreign Direct Investments (FDI) in Canada and abroad have been steadily rising over the past several decades. This week we discuss the advantages and challenges associated with FDI.

Questions to Ponder: (a) What is Foreign Direct Investment? (b) Why Canadian Businesses are Pursuing Foreign Investments? (c) What are the gaps in Foreign Direct Investments?

Key Readings: (a) Case: Automotive Foreign Direct Investment in the United States: Economic and Market

Consequences of Globalization, Kelley School of Business

Week 10 (Mar 10th): Managerial Implications of Globalization & Regionalism

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This session will endeavor to draw, tie-in and synthesize insights from the discussion held in the previous sessions so as to map the contours of the managerial implications of regionalism and globalization.

Questions to Ponder: (a) Where do the current circumstances leave corporate executives and their companies? (b) How can nations and companies fully participate & compete in this global marketplace? (c) How is the way individuals work and interact changing because of globalization? (d) Why do (or should) firms expand globally? (e) Does every firm seek identical goals or face the same threats in this process?

Key Readings: Wild, Wild and Han (2007)

(a) “Analyzing International Opportunities” (Chapter 12); (b) “Developing and Marketing Products” (Chapter 14) (c) Qureshi, Z. (1996) “Globalization: New Opportunities, Tough Challenges”, Finance &

Development, March: 30-33. (d) Case: Lessons Learned from Brazilian Multinationals' Internationalization Strategies, Harvard

Business Review

Week 11 (Mar 17th): Group Presentations

Week 12 (Mar 24th): Group Presentations

Week 13 (Mar 31nd): Group Presentations

Week 14 (Apr 7th): Group Presentations

In this final session of the course the following will be the main activities: (a) Course Evaluation, (b) Course Summary and Wrap-up.

Due: Final term Paper

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Course Sharing Websites Student or professor materials created for this course (including presentations and posted notes, labs, case studies, assignments and exams) remain the intellectual property of the author(s). They are intended for personal use and may not be reproduced or redistributed without prior written consent of the author(s).

Required calculator in BUSI course examinations If you are purchasing a calculator, we recommend any one of the following options: Texas Instruments BA II Plus (including Pro Model), Hewlett Packard HP 12C (including Platinum model), Staples Financial Calculator, Sharp EL-738C & Hewlett Packard HP 10bII

Group work The Sprott School of Business encourages group assignments in the school for several reasons. They provide you with opportunities to develop and enhance interpersonal, communication, leadership, follower-ship and other group skills. Group assignments are also good for learning integrative skills for putting together a complex task. Your professor may assign one or more group tasks/assignments/projects in this course. Before embarking on a specific problem as a group, it is your responsibility to ensure that the problem is meant to be a group assignment and not an individual one.

Grade Definition In accordance with the Carleton University Undergraduate Calendar (p 34), the letter grades assigned in this course will have the following percentage equivalents:

A+ = 90-100 B+ = 77-79 C+ = 67-69 D+ = 57-59

A = 85-89 B = 73-76 C = 63-66 D = 53-56

A - = 80-84 B - = 70-72 C - = 60-62 D - = 50-52

F = Below 50 WDN = Withdrawn from the course

ABS = Student absent from final exam

DEF = Deferred (See above)

FND = (Failed, no Deferred) = Student could not pass the course even with 100% on final exam

FND:

To reduce instances of miscommunication Carleton introduced a grade FND (Failure with No Deferral) to be assigned to students who fail to meet the minimum in-term performance standards explicitly set out in the outline and applied consistently (i.e., there is no other hidden criteria).

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Satisfactory In-term Performance

1. Unless otherwise stated below in item #2, the requirement for Satisfactory In-term Performance is set at 50% of all, not each, pre-final term work (i.e. assignments, participation marks, tests etc.).

2. The criterion/criteria and the standard(s) for Satisfactory In-term Performance are as follow(s): a. N/A

3. Unsatisfactory In-term Performance in this course will lead to failure in this course (regardless of the performance at the Final exam or final project) Yes No FND grade in this course (in case of missed Final exam or project) Yes No

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Academic Regulations, Accommodations, Etc. University rules regarding registration, withdrawal, appealing marks, and most anything else you might need to know can be found on the university’s website, here:

http://calendar.carleton.ca/undergrad/regulations/academicregulationsoftheuniversity/

Requests for Academic Accommodations

Academic Accommodations for Students with Disabilities

The Paul Menton Centre for Students with Disabilities (PMC) provides services to students with Learning Disabilities (LD), psychiatric/mental health disabilities, Attention Deficit Hyperactivity Disorder (ADHD), Autism Spectrum Disorders (ASD), chronic medical conditions, and impairments in mobility, hearing, and vision. If you have a disability requiring academic accommodations in this course, please contact PMC at 613-520-6608 or pmc@carleton.ca for a formal evaluation. If you are already registered with the PMC, contact your PMC coordinator to send me your Letter of Accommodation at the beginning of the term, and no later than two weeks before the first in-class scheduled test or exam requiring accommodation (if applicable). After requesting accommodation from PMC, meet with me to ensure accommodation arrangements are made.

The deadlines for contacting the Paul Menton Centre regarding accommodation for final exams for the

December 2015 exam period is November 6, 2015 and for the April 2016 exam period is March 6, 2016.

For Religious Obligations:

Students requesting academic accommodation on the basis of religious obligation should make a formal, written request to their instructors for alternate dates and/or means of satisfying academic requirements. Such requests should be made during the first two weeks of class, or as soon as possible after the need for accommodation is known to exist, but no later than two weeks before the compulsory event.

Accommodation is to be worked out directly and on an individual basis between the student and the instructor(s) involved. Instructors will make accommodations in a way that avoids academic disadvantage to the student.

Students or instructors who have questions or want to confirm accommodation eligibility of a religious event or practice may refer to the Equity Services website for a list of holy days and Carleton's Academic Accommodation policies, or may contact an Equity Services Advisor in the Equity Services Department for assistance.

For Pregnancy:

Pregnant students requiring academic accommodations are encouraged to contact an Equity Advisor in Equity Services to complete a letter of accommodation. The student must then make an appointment to discuss her needs with the instructor at least two weeks prior to the first academic event in which it is anticipated the accommodation will be required.

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Academic Integrity Violations of academic integrity are a serious academic offence. Violations of academic integrity –

presenting another’s ideas, arguments, words or images as your own, using unauthorized material,

misrepresentation, fabricating or misrepresenting research data, unauthorized co-operation or

collaboration or completing work for another student – weaken the quality of the degree and will not be

tolerated. Penalties may include expulsion; suspension from all studies at Carleton; suspension from full-

time studies; a refusal of permission to continue or to register in a specific degree program; academic

probation; and a grade of Failure in the course, amongst others. Students are expected to familiarize

themselves with and follow the Carleton University Student Academic Integrity Policy which is available,

along with resources for compliance athttp://www2.carleton.ca/sasc/advisingcentre/academic-

integrity/.

Assistance for Students: Student Academic Success Centre (SASC): www.carleton.ca/sasc

Writing Tutorial Services: http://www1.carleton.ca/sasc/writing-tutorial-service/

Peer Assisted Study Sessions (PASS): www.carleton.ca/sasc/peer-assisted-study-sessions

Sprott Student Services

The Sprott student services office, located in 710 Dunton Tower, offers academic advising, study skills

advising, and overall academic success support. If you’re having a difficult time with this course or

others, or just need some guidance on how to successfully complete your Sprott degree, please drop in

any weekday between 8:30am and 4:30pm. Our advisors are happy to discuss grades, course selection,

tutoring, concentrations, and will ensure that you get connected with the resources you need to

succeed! http://sprott.carleton.ca/students/undergraduate/support-services/

Be in the know with what’s happening at Sprott: Follow @SprottStudents and find us on Facebook

SprottStudents Sprott.

Important Information:

- Students must always retain a hard copy of all work that is submitted.

- All final grades are subject to the Dean’s approval.

- Please note that you will be able to link your CONNECT (MyCarleton) account to other non-CONNECT accounts and receive emails from us. However, for us to respond to your emails, we need to see your full name, CU ID, and the email must be written from your valid CONNECT address. Therefore, it would be easier to respond to your inquiries if you would send all email from your connect account. If you do not have or have yet to activate this account, you may wish to do so by visiting https://portal.carleton.ca/